Creditors Bill

rep, am, st, co, property, debtor, court and judgment

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1105 ; Thorp v. Leibrecht, 56 N. J. Eq. 499, 39 Ad. 361; but a judgment may be dis pensed with when a creditor desires. to reach assets of a deceased debtor ; Mallow v. Walk er, 115 Ia. 238, 88 N. W. 452s 91 Am. St. Rep. 158; or when a debtor has absconded and cannot be found within the state ; First Nat. Bank of Riverside v. Eastman, 144 Cal. 487, 77 Pac. 1043, 103 Am. St. Rep. 95, 1 Ann. Cas. 626 ; Quarl v. Abbett, 102 Ind. 234, 1 N. E. 476, 52 Am. Rep. 662 ; or where the debtor is insolvent and the claim is undis puted ; Talley v. Curtain, 54 Fed. 43, 4 C. C. A. 177. An attachment which creates a lien upon real property may be the founda tion of a creditor's bill to set aside a fraud ulent conveyance ; Chicago & A. Bridge Co. v. Packing Co., 46 Fed. 584 ; Evans v. Lough ton, 69 Wis. 138, 33 N. W. 573. Where exe cution after judgment is necessary to form part of basis for a bill, it should be directed to and returned either from the county where the judgment was obtained or where the debtor resides ; Nashville, C. & St. L. R. Co. v. Mattingly, 101 Ky. 219, 40 S. W. 673 ; Illinois Malleable Iron Co. v. Graham, 55 Ill. App. 266.

Creditors cannot attack the interest of third parties, alleged to have been obtained by fraud, until they have gained a standing in court by legal proceedings; Scott v. Cham bers, 62 Mich. 532, 29 N. W. 94 ; Goode v. Garrity, 75 Ia. 713, 38 N. W. 150 ; Tift v. Collier, 78 Ga. 194, 2 S. E. 943 ; McMurtry v. Masonic Temple Co., 86 Ky. 206, 5 S..W. 570.

Judgments of the federal court cannot be made the basis of a creditor's bill in a state court; Winslow v. Leland, 128 Ill. 304, 21 N. E. 588 ; contra, First Nat. Bank of Chi cago v. Sloman, 42 Neb.• 350, 60 N. W. 589, 47 Am. St. Rep. 707 ; Chicago & A. Bridge Co. v. Fowler, 55 Kan. 17, 39 Pac. 727. The plaintiff in a creditor's bill is not concluded by sworn answer of defendant ; Edwards v. Rodgers, 41 111. App. 405.

A creditor's bill is not maintainable against a debtor and his fraudulent grantee, after the return of an execution satisfied ; Davis v. Walton, 80 Me. 461, 15 Atl. 48. A judgment creditor's bill may be framed for the double purpose of aiding an execution and to reach property not open to execution ; Vanderpool v. Notley, 71 Mich. 431, 42 N. W. '680.

The debtor should be made a party ; U. S. v. Howland, 4 Wheat. (U. S.) 108, 4 L. Ed. 526 ; the person who has possession of the property sought to be reached must be joined; Dob bins v. Coles, 59 N. J. Eq. 80, 45 Atl. 444 ; and in general all who have interests which will be affected by the decree in the property sought to be reached must be made parties ; State v. Superior Court, 14 Wash. 686, 45

Pac. 670; Marshall's Ex'r v. Hall, 42 W. Va. 641, 26 S. E. 300. A single creditor may file a bill on his own behalf and he is entitled to retain the Priority thereby gained over other creditors ; Senter v. Williams, 61 Ark. 189, 32 S. W.' 490, 54 Am. St. Rep. 200 ; Pullis v. Robison, 73 Mo. 201, 39 Am. Rep. 497 ; Clark v. Figgins, 31 W. Va. 157, 5 S. E. 643, 13 Am. St. Rep. 860 (contra, where other creditors intervene ; Johnston v. Paper Co., 153 Pa. 189, 25 AU. 560, 885) ; except in cer tain suits, where a trust or quasi-tru8t exists for all creditors ; Fauch v. De Socarras, 56 N. J. Eq. 524, 39 AU. 381; Coddington v. Bispham's Ex'rs, 36 N. J. Eq. 574 ; Baker v. Kinnaird, 94 Ky. 5, 21 S. W. 237; Day v. Washburn, 24 How. (U. S.) 355, 16 L. Ed. 712.

It is the filing of the bill and service of process after the return of execution which gives the plaintiff a specific lien ; Hines v. Duncan, 79 Ala. 112, 58 Am. Rep. 580 ; Beith v. Porter, 119 Mich. 365, 78 N. W. 336, 75 Am. St. Rep. 402.

A court of equity has jurisdiction to seq uestrate property in a creditor's suit, where the bill charges fraud as well as insolven cy ; Robinson v. Ins. Co., 162 Fed. 794. Intangible property can be reached by cred itor's bill, such as patents and copyrights ; Stephens v. Cady, 14 How. (U. S.) 528, 14 L. Ed. 528 ; Ager v. Murray, 105 U. S. 126, 26 L. Ed. 942; probably the majority rule is that, in the absence of statutory authoriza tion, a creditor's bill cannot reach choses in action unless the case presents some inde pendent ground of equity jurisdiction; Greene v. Keene, 14 R. I. 388, 51 Am. Rep. 400.

Alimony awarded to a wife cannot be ap plied by creditor's bill to the payment of a debt contracted before the decree of divorce ; Romaine v. Chauncey, 129 N. Y. 566, 29 N. E. 826, 14 L. R. A. 712, 26 Am. St. Rep. 544 ; a contingent interest, such as devise under a will, may be subjected to the payment of debts ; Jacob v. Howard (Ky.) 22 S. W. 332 ; so of any equitable interest ; Galveston, H. & S. A. R. R. Co. v. McDonald, 53 Tex. 510. Fraudulent transfers of personalty may be set aside, but the bill is seldom used for this purpose, the general practice being to levy on personal property and determine the own ership by action of replevin ; O'Brien v. Stambach, 101 Ia. 40, 69 N. W. 1133, 63 Am. St. Rep. 368 ; Pierstoff v. Jorges, 86 Wis. 128, 56 N. W. 735, 39 Am. St. Rep. 881; High ley v. Bank, 185 Ill. 565, 57 N. E. 436.

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